Posted on 12/02/2021 10:11:38 AM PST by SeekAndFind
For just under $15 per month, in perpetuity, the legality of your homeownership can be protected from identity thieves.
Really?
Here in California, and most likely elsewhere, in order for a vestee to convey a property title to another person or corporation, a notary has to confirm the vestee's identity. A signature alone is no longer sufficient. After the burst credit bubble of 2008, a thumb print also has to be provided. It's pretty hard to forge a thumb print.
The scammers claim that the title thief can then re-mortgage the property, take the money, and stick you with the bill. Again, really? In order for an institutional lender, such as a bank or credit union, to fund the loan, the borrower's title has to be insured. The seniority of the new lien has to satisfy the lender's requirements when compared to all of the other liens that may be on the property. The borrower's identity has to be confirmed as well as the borrower's ownership of the title.
How do I know all this? For the last 26 years, I've been a real estate agent. I've had to renew my license six times and have concluded dozens of transactions. And if you don't believe me, Real Clear Investigations published an exposé on this subject a year ago:
How can the scammers continue to get away with this? For one thing, the threat of being dispossessed can be quite a motivator. Also, the purveyors of this fraud have enlisted a bevy of popular and credible media personalities as endorsers — including some well accomplished attorneys.
How could a lawyer get sucked into this? It turns out that most lawyers often specialize in a specific field — and title insurance is particularly unique and exotic when compared to divorce, criminal defense, or medical malpractice.
(Excerpt) Read more at americanthinker.com ...
“Two words: Title Insurance - one time purchase.”
Title insurance insures there are no unknown liens on the property and will cover them if there are. Anything that happens after the closing is not covered by title insurance.
“Unlike other types of insurance that help cover future mishaps, title insurance is designed to protect the policyholder from any past title discrepancies from the seller or previous owner that might be uncovered during or after the purchasing process.”
https://www.zillow.com/home-buying-guide/what-is-title-insurance/
If you are at the $500k mark Liability insurance is highly recommended.
Would any loss be covered by liability insurance?
“The ones who will loose out is the bank or creditor making the equity loan to the scammer as it will fall back to them.”
Yep
You didn’t do it? you don’t owe it.
O’Reilly.
bump for later
This is a scam in its own right! Don’t need it!
I worked for quite a while for a major title insurance company (among many other real-estate related things) One of the things a company that does title insurance is supposed to do, is a check though real estate records and other sources to make sure the title is clear.
They actually did a study and looked at how it would affect their bottom line if they did absolutely =nothing= after accepting the ‘title insurance’ payment. They determined that paying off the (very) rare claim was a cost they could eat while they simply banked the money. I don’t think they acted on that information, but it was useful for them to know. Flood insurance was almost a bigger scam. They would do what they called a ‘flood cert’ for a specific property and store the results in a database. Next time that property came up on the market they just did a database query and billed the ‘customer’ full price. It was extraordinarily lucrative, especially since the likelyhood of the request for a ‘flood cert’ coming through them was =very= high because of their market position.
No scammer can borrow a friggin dime until the mortgagor cancels the Deed of Trust.
It’s a bullshit product.
Title Insurance is a guarantee as to the title as stipulated at the closing time. Very important to get a land survey to document with the Insurance. Exclusions are outside of the scope. Be aware. Any new attachments to the title are not insured. IE: if you let your neighbor encroach, it’s not covered. It would be at your expense to defend anything “new” after closing or policy effective date. (This is not legal advice)
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